Factors that can affect the Value of Your Property

Home prices can differ substantially. Factors
range from economic and common sense,
through to intangible factors.

Location - Location - Location
There is probably nothing that influences a property’s
price more than it’s location. Including.

Comparable Sales
Properties in your neighbourhood that are comparable to
your property and have recently sold. Your agent may
provide you with a C.M.A. This is a comparative market
analysis report to assist in valuing your home.

Compare with actual sold properties. Not list prices.
Properties are only worth what people will pay for them.
Comparisons must also be comparable to yours in
position / age / condition / size / land / number of
rooms and the like.

Market Performance
Supply and demand of housing has a substantial influence
on prices. This can be quite geographical. Where homes
in one area have a different supply and demand scenario,
than in another area.If there’s an availability shortage
home prices will normally rise. If homes in a
neighbourhood are in low demand and properties are
selling for less than the asking price, expect values to
drop.

Property Condition
Maintenance is a major factor that can affect a home’s
value. 2 properties with identical position, size, rooms, can
have vastly different values. Because of their differing
conditions.
Well maintained properties, of course, demand a higher
value. So it is important to keep your house well
maintained and in good condition.

Potential for Renovation.
This maybe minor or a complete renovation. Often
buyers will want to do some degree of renovation. So
the potential for the buyer to improve and personalise
the property can have a bearing on the property price.

Interest Rates
Movements in interest rates can affect the value of
property. Interest rates can have a huge impact on
property affordability. Lower interest rates equal
better affordability, which pushes up demand and in
turn increases house prices. And likewise higher
interest rates can have downward pressure on housing
prices.

Infrastructure Projects
Infrastructure development in the area is another major
factor that influences property prices. If there are
major infrastructure projects happening close by, you
will generally see a higher demand for property and in
turn an increase in property values.

There are many more in-depth factors that can also
affect the value of your property.

Please talk to us for a consultation.